Topper said continuing ‘‘restrictive’’ conditions on effluent disposal and monitoring made it necessary to consolidate operations at their Gunnedah plant.

‘‘We have seen rising electricity costs over the last two years, including the flow-on effects of the carbon tax,’’ Mr Topper said. ‘‘We are a large consumer of all utilities’’. He said the company decided the operation was unviable.

They were paid instead of working out the notice period and Topper said all entitlements would be honoured. There were still some workers at the plant but Topper said most had already left.

The tannery has been the subject of strong community opposition over many years because of what some people described as the unbearable smells from its operations.

David Topper said the years the company has faced many large costs, including fighting legal action over the operation and upgraded waste systems.

Walfertan exported wet-blue hides to Europe and Asia for the automotive, upholstery and footwear industries.

Topper have been operating the tannery since 1993.

Source: Newcastle Herald